This project has been funded with support from the European Commission (226388-cp-1-2005-1-de-comenius-c21). This publication reflects the views only of the authors

2.1.1. Information Tachnologies and Technology Flows

Technologic development – developments in the production of goods and services, marketing and supply techniques (including firm organizational structures) takes place in the core of human progress and development. Technologic development at the national level occurs through invention and innovation, adaptation and modification of pre-existing technologies, and diffusion of technologies among firms, individuals and public sector.
Statistical indicators can be confined in three major groups: scientific invention and innovation, diffusion of pre-existing technologies and benefiting new technologies. Another indicator is the measure of how much countries are exposed to foreign technologies. Measuring technology directly is difficult because it has no physical and easily countable presence such as pencils or automobiles. Contrary to services it has no well-defined price that allows measurement and summation either. Instead, it is embedded in products, intermediates, and processes. Consequently the studies trying to measure technology should use indirect techniques such as level of education, number of scientists and engineers, R&D expenditures and personnel, diffusion of technology, indicators of innovation (number of patents issued), ratio of high-tech activities in manufacturing value-added and exports, and national innovative capacity.
If technologic diffusion in the world is examined under these three major groups of indicators, for the first group -scientific invention and innovation- scientific and technologic articles, patent and intellectual properties, and income from licensing statistics can be used. When analyzed, it is seen that these variables are related to income. According to 2003 data number of articles and patents per 1 million people in high-income countries are 83 and 36 times higher than those in low-income countries respectively. As of 2004 low-income countries’ income from intellectual properties and licensing is almost zero.
Under the second group -utilizing older technologies- the statistics of per capita electricity consumption, phone lines per 100 people, phone call fees, highway and railway densities and airline usage can be used. When analyzed, although income has no effect on these statistics, culture and capacity has crucial implications on the usage of these variables. High-income countries consume 26 times more electricity (in 2004); have 18 times more phone lines and use it 20.7 times cheaper (in 2004); have 3.25 times more intense railways (in 2005); have 4.8 times more agricultural machines and tractors (in 2003); use airlines 60 times more (in 2004) than low-income countries.
Third group is the utilization of new technologies. Under this group statistics of internet users, broad-band internet users, personal computer ownership, mobile phone ownership per 1000 people and internet band capacity can be used. When these statistics are analyzed, it is seen that income has direct effect as this kind of development is less costly and more elastic than older technologies necessitating infrastructure investments. High-income countries have 12 times more internet users (in 2005); 163 times more broad-band internet users (in 2005); have 53 times more personal computers (in 2004) and have 19 times more mobile phones (in 2004) than low-income countries per 1000 people.
The relative efficiency of goods and services that an economy can produce with certain amount of labor and capital is called total factor productivity (TFP). In general, TFP is interpreted as the measure of production technology and its rate of growth as the measure of technical progress. International TFP comparisons reveal high productivity differences between high, and low and middle-income countries in the production of goods and services. As of 2005 average TFP in low-income countries is only 5% of the productivity in the USA. While this gap closes in low and lower-middle-income countries, upper-middle-income countries can only maintain their position against high-income countries.
In the light of these indicators diffusion of technology has the following features:

• 
  Although technologic levels of countries depend on their income levels, the nature of this relationship may differ according to the scope of technology analyzed.
  
• 
  Although the level of technology is in the tendency to increase with income, the levels of technologies among countries converge.
  
• 
  The level of technology may differ widely within the country.
  
• 
  In the last decade the technology gap between middle and high-income countries narrowed.
  
• 
  On average technology improved faster in low-income countries.
  
• 
  The diffusion of technology between countries gets pace.
  
• 
  As a consequence, the most important feature of the level of technology is the diffusion pace of technology within a country.